[idov]

This is a distorted view of things. Israel had its Greece-style crisis in 2002. Netanyahu, then FM, took draconian measures which made huge cuts in social welfare spending. That caused him and the Likud to limp in third in the next election as the poor, the traditional base of the Likud, went over to Kadimah, the winners then. Netanyahu then won the election last year.

Israel's economy is basically strong, having not been affected greatly by the recession in America, but the real threat is that if Europe slides away, that could take Israel with it.

The reference to massive inflation in the 80s was only partially related to social welfare costs. Those were the years when America had a 20 per cent prime rate or thereabouts and it impacted the entire world. Besides Israel pays a huge chunk of his budget on defence costs and they went through a big war at that time.

Israel is not like Greece. Retirement age goes on a sliding scale with the average at 67 not 53 as in Greece. There is a minimum wage but you can't live on it and that's all a large chunk of workers get, so you need two paycheques in a family. The ultra-Orthodox are an economic burden but they are not a major percentage of the population. As for the Arabs most of them are productive citizens. If anyone is interested in Israel's economic state, further reading is indicated.

[SJackson]

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Note idov's post 10, which is a bit more rational than the author.